Chairman Joe Tsai is doubling down on an "all in" AI strategy, SCMP reported last Friday. • Alibaba stock is showing weakness. Why is BABA stock trading lower?At VivaTech in Paris, Tsai laid out Alibaba’s "full-stack" AI plan spanning chips, cloud infrastructure, foundation models and consumer applications, arguing AI could ultimately represent a $50 trillion total addressable market.He also framed the bet as intentionally broad — investing across the value chain now and "figure out the winners later," rather than picking a single AI segment.With the Nasdaq down 0.58% while the Russell 2000 is up 0.84%, Monday’s tape is mixed, and Alibaba is underperforming even as six sectors are advancing. That divergence suggests the market is still treating China mega-cap tech as a higher-risk pocket despite upbeat AI messaging.Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the Aug. 28 (estimated) earnings report.
EPS Estimate: $2.51 (Up from $2.06 year-over-year)
Revenue Estimate: $38.72 billion (Up from $34.57 billion YoY)
Valuation: P/E of 16.4x (Suggests fair valuation relative to peers)
